Retirement is a significant phase of life that demands careful planning and consideration. Beyond just financial security, retirement should be about finding purpose and fulfilment. In Japanese culture, there’s a concept called ‘IKIGAI’, which translates to ‘a reason for being’ or ‘a reason to wake up in the morning.’

In the context of retirement planning, your financial IKIGAI is the intersection of your financial goals, investments, and passion projects. Let’s explore how retirement planning can become your pathway to a fulfilling life in your golden years.

1. Understanding Retirement Planning

Retirement planning involves setting financial goals and creating a roadmap to achieve them. It’s about ensuring that you have enough resources to maintain your desired lifestyle once you retire from your primary career. This process typically involves calculating your retirement expenses, estimating your retirement income from various sources such as pensions, Social Security, and personal savings, and determining how much you need to save to bridge any gaps.

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2. Investments for Retirement Planning

Investing plays a crucial role in retirement planning as it helps grow your wealth over time and provides a source of income during retirement. “When it comes to investing for retirement, it’s essential to adopt a diversified approach that balances risk and return. This may include investing in a mix of stocks, bonds, mutual funds, real estate, and other assets based on your risk tolerance, time horizon, and financial goals,” says Rajiv Bajaj, Chairman & MD, BajajCapital Ltd.

3. Passion Projects in Retirement

While financial security is crucial, retirement is also an opportunity to pursue your passions and interests. Passion projects not only add enjoyment and fulfilment to your life but can also provide a sense of purpose and keep you mentally and physically active during retirement.

Consider exploring hobbies, volunteering opportunities, or even starting a small business based on your interests and skills. Whether it’s gardening, painting, mentoring, or travelling, finding activities that bring you joy can enrich your retirement years and give you a reason to look forward to each day.

4. Combining Financial Goals with Passion

“Retirement planning shouldn’t be solely focused on accumulating wealth. It should also encompass your values, aspirations, and what brings meaning to your life. By aligning your financial goals with your passions, you can create a retirement plan that not only sustains you financially but also nourishes your soul,” suggests Bajaj.

For example, if you have a passion for environmental conservation, you could invest in socially-responsible funds or donate a portion of your retirement savings to environmental causes. Alternatively, if you’re passionate about education, you could allocate funds for scholarships or educational programs in your community.

Retirement planning is not just about securing your financial future; it’s about discovering your financial IKIGAI – your reason for being in retirement. By integrating investments for retirement planning with passion projects that bring you joy and fulfilment, you can create a retirement that is both financially secure and emotionally satisfying. Start planning today to ensure that your retirement years are filled with purpose, meaning, and happiness.